The accounting basis that attempts to measure performance in the period in which itoccurred is the:
A)IFRS basis.
B)Accrual Basis.
C)Matching Basis.
D)Cash basis.
E)Revenue Recognition Basis.

Question

Quizplus · Accepted Answer

The accrual basis of accounting recognizes revenues and expenses when they are earned or incurred, regardless of when cash is received or paid. This basis of accounting provides a better measurement of performance as it matches expenses against the revenues they help generate, allowing for a more accurate picture of the company's profitability. The other options (IFRS basis, matching basis, cash basis, and revenue recognition basis) do not specifically address the timing of when revenues and expenses are recognized.

The Accounting Basis That Attempts to Measure Performance in the Period